5 Tips for Keeping Car Insurance Rates Low

Cars are extremely expensive in Singapore, so you’d be forgiven for wanting to keep your car insurance premiums as low as possible.

Here are some ways to do just that.

Do not make claims indiscriminately if they would affect your No Claim Discount

Many Singaporeans have gotten into car accidents, only have to have the culprit offer to compensate them out of pocket rather than make a claim on their car insurance.

They do this because by avoiding insurance claims, they will be able to enjoy a No Claim Discount the next time they have to pay their car insurance premium. No Claim Discounts can be significant, especially if you are able to avoid making claims for several rows in a year.

Other than driving carefully to avoid accidents in the first place, you should also do the math to determine if a claim is worth losing your No Claim Discount over. In the case of minor accidents, the answer is sometimes no.

Don’t get demerit points

Driving safely pays off! For every three years you go without receiving any demerit points, you will be issued a Certificate of Merit by the Singapore Police Force. And a Certificate of Merit will often lower your motor insurance premiums.

That should be an additional incentive to drive safely, avoid speeding, not use your phone on the road and avoid beating traffic lights.

The excess is the amount of money you must pay out of pocket when making a car insurance claim. A higher excess means you need to fork out more cash when you make a claim, but it also means you pay lower insurance premiums.

If you are a very careful driver who hardly if ever makes car insurance claims, it might be a good idea to raise the excess on your policy so as to benefit from the lower premiums.

Just be cognisant that, with a higher excess, you will end up paying more out of pocket each time you actually do have to make a claim.

Choose a vehicle model that attracts lower car insurance premiums

Many factors contribute to the premiums an insurer decides to charge you. One of these factors is the model of the car. Certain models tend to attract higher premiums, while others attract lower premiums.

For instance, sports cars that are popular with young drivers tend to get slapped with higher insurance premiums than family cars typically purchased by middle-aged parents.

Wait until you’re older and more experienced

Regardless of your actual driving skill, insurers tend to charge very young drivers who just got their driver’s licence much higher insurance premiums than older and more experienced drivers.

So, if you are an 18-year-old fresh out of driving school and are balking at the insurance premiums being quoted, you might find it comforting to know that in a few years’ time, your premiums are likely to be much lower.

Enjoy peace of mind every time you step into your car with motor insurance from HL Assurance.